Nowadays, renting an apartment is becoming very popular. Not just by rising inflation and fewer and fewer opportunities, but a change in the trend. There is no longer such a push to have something that is only your possession. People rather choose a comfortable option. Let's take Norway, where it's fashionable to rent an apartment, which is renovated after each tenant to provide the greatest level of service. So, great insurance for rental homes is obligatory.
But in today's article, you will address the situation when you want to rent an apartment and are considering the best way to secure your property. Remember, that your property is your investment, so risk is always involved.
Why is Insurance on Commercial Property Necessary?
For simple reasons. Property is not a cheap thing, so you decide to make money from it by renting it out. Sometimes you can be wrong about the tenant, he can cause us a lot of damage, for which you can incur large costs. There are also random situations for which the tenant is not necessarily responsible. It's worth taking care of your interests.
What Should my Insurance for Home Include?
Walls and fixed elements for the property are the bare minimum. If there are also household appliances and electronics in our property, it is also worth covering them with insurance. Sometimes mishandling can lead to the equipment breaking down. In addition, furniture, carpets, and valuable items that you decide to leave on our property. Protection of equipment will make you much calmer, for sure.
What Coverage Should You be Interested in?
In addition to intentional damage that can be caused by tenants, you are also talking about fortuitous situations over which neither the landlord nor the tenant has control. Any natural disaster, fire, flooding (of course, not only by the elements, but, for example, by a neighbor if you rent an apartment in a block of apartments), hurricanes, lightning strikes, which can cause general surges and threats from electricity and power. House insurance for rental is like a business plan, matters in this kind of situation.
Landlord Insurance Extensions Worth Considering
- Vandalism and devastation protection. It does not always apply to tenants, but also to third parties, such as burglary or robbery. If your real estate is located in a high-risk area, it’s worth buying this extension.
- Protection of glass objects. Your landlord insurance will protect any broken window glass, shower stall, induction hobs, sometimes even photovoltaic panels if you own them.
- Flood protection. This extension is necessary if our property is located relatively low. Rent house insurance, dedicated for single-family houses, usually has it. If you rent a ground-floor apartment in a block of apartments, you should think about it on your own. Here you will also add protection from flooding. Through the fault of our tenant, or the fault of a neighbor.
- Liability insurance of private life. Unintentional damage to the health or property of tenants, with random situations on the property. Recommended especially if your clients are families with children.
- Home Assistance. You never think about it until something breaks and a problem arises. From the point of view of the owner of a rented apartment, this is a great convenience, as minor defects are not his concern. There are always plumbers, carpenters, glaziers, a specialist in electronics, and household appliances.
- Legal assistance. This is often an available option, not only for problems with tenants, as well as such seemingly simple matters as drawing up and signing a lease agreement or creating handover protocols
What is the Point of This?
Contrary to appearances, insuring a rented apartment sometimes even both sides (landlord-tenant relationship) is an increasingly common practice. It's not only the application of the method of limited trust, as well as securing your interests in the future as a landlord, for the tenant is a kind of comfort, in case of inadvertent damage, which happens to all of us and is as normal as possible. However, the insurance itself is a comfort, but it should be in addition to a fairly drafted rental agreement, for the safety of your budget.
How Does Rent House Insurance Look Financially?
To find the best deal, you should use publicly available insurance calculators, or go to the insurer of our choice and talk to a customer advisor. In order to choose the best deal, you can, of course, go to several insurers and then confront the offers. The amount of such insurance varies from 50,000 to even 100,000 thousand, so the annual or monthly premium in the calculation comes out small.
Simulation of the Damage
Let's assume that damage has occurred in the apartment you rent. To begin with, you need to determine the extent of this damage, from whose insurance it should be covered. If from the landlord, then the landlord, if the tenant, then similarly. From the moment the damage is detected, you have about 4-7 days to report it. Now it depends on the insurer.
Sometimes an ombudsman must appear to determine the extent of the damage. The undisputed part of the compensation, which is simply due without the result of the appraiser's assessment, should be paid up to 30 days after the report. For the disputed part, the insurer has 14 days if you prove the reasonableness of its payment.
It may also be that you do not agree with the amount of compensation. In such a situation, of course, you have the opportunity to appeal. There are two ways, either the insurance company admits you are right, or you go to court.
It is worth adding that you are entitled to compensation only if you fulfill the obligations given to you (paying premiums on time) and meet all requirements, and also if the damage caused is within the scope of our insurance. This is like a business owner’s policy.
When Does an Insurer Have the Right to Deny Compensation?
In addition to intentional action, negligence is, of course, a number of other situations. Among others, acting under the influence of intoxicants and psychoactive drugs. In addition to this, the lack of required technical inspections (such as electrical installations), undeclared renovation that should be covered by another type of insurance, use, or possession of objects such as weapons or explosives. In addition to these, extreme situations: war, martial law, terrorist attack or riots.
We hope that with this article we have dispelled your doubts about the legitimacy of commercial properties' insurance. It is worth taking care of your interests well in advance!
